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International spot gold have shown erratic movement in last 2 weeks, where market have registered two weeks high of $988, then registered low of $916, turning all indicator bearish.
Momentum studies are bearish but are now at oversold levels and will tend to support reversal action if it occurs. We can Cleary see a bounce back momentum. Nearest retrenchment level can be seen near first resistance on $944.
The daily stochastic have crossed over down which is a bearish indication. The stochastic indicators are increasing from oversold level, which is bearish and should support higher price.
The market's short-term trend is negative as the close remains below the 9-day EMA ($919.55), 27-day EMA ($925.55), 50-day EMA ($920.63),The upside closing price reversal on the daily chart is somewhat positive. Market still looking supportive for long term as market remains above 100-day EMA ($909.95), and 200-day EMA ($874.95).
International Spot Gold Daily Chart:
Technical are neutral to bearish signalling sideways to lower prices in the near term. Initial support for the market is around 900.00 levels. If broken can see further fall to $872.00 and $828.00 , If market holds above $944.00 further rally can be seen towards $972.00 and $1016.00
Recommendation:
As market have given a recent fall can show some correction upside till $925, trader can wait unless market break this level, if market again come down from this level and break $919 range; can sell with a stop loss of $948 for the target of $903, $876 and $860 .Short term bearish ness can be seen if Crude oil prices continue down trend and Dollar remains strong.
Regards and Thanks
Kamlesh Jogi
Commodities Research Analyst.
